Taiwan-based chipset and motherboard makers, in response to recent speculations that ATI Technologies is an acquisition target for Advanced Micro Devices (AMD), feel that an Intel buyout of ATI would make more sense, according to industry sources.

Unspecified chipset and motherboard makers called the possible AMD-ATI acquisition as less logical than an Intel-ATI acquisition. According to the makers, insufficient capacity and unstable shipment process concerns have been a long-term issue for AMD, which will have limited capital after it sinks US$2.5 billion into revamping its Dresden fab. Buying ATI, whose total stock is valued at over US$4.2 billion and does not provide any production facilities, is not a reasonable idea for AMD, stated the makers.

In addition, AMD has maintained a close partnership with ATI's rival Nvidia and third-party chipset suppliers Silicon Integrated System (SiS) and VIA Technologies, both of which compete with ATI in the same area, the makers indicated. If AMD decides to buy ATI to pave the way for own-brand chipset production, it will lead to unbalance in the chipset industry, according to the makers.

To date, ATI is the only "official" chipset supplier for Intel, the makers noted. AMD buying out ATI would definitely hurt Intel, but the makers wonder if it would be necessary.

By: DocMemory
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